Here is the straight dope..
$321k left on mortgage @3.2% interest rate. Home worth about 450k on the market. Don't plan on selling in this real estate climate because then I would have to buy something much more expensive for what we have now, although I would like to move eventually to be closer to family.
$872k in High Yield MM account earning 3.6% a year / $2,616.00 mo or $31,329.00 / annually. ( please don't ask why I'm holding so much cash)
Mortgage payment = $1,514.00/mo or $18,168.00/ year, paid out of my checking account from our day jobs.
My though process is that if I deduct my mortgage payment from my MM interest that leaves a net total of $1,102.00/mo. ( $2,616 - $1,514 = $1,102. )
However If I was to pay off my mortgage I would still have $551k in MM earning same interest which would be $19,836.00 annually or $1,653.00 / mo
So if I pay off mortgage i have basically a net positive of $551.00 / mo or $6,612.00 annually. ( $1,653 - $1,102 = $551 )
What do you all think about this? Does my math check out? I also know that interests rates fluctuate and will eventually go lower so obviously I should take that into account.